Trade

Abstract

This chapter surveys the literature on the relationship between international trade and inclusive growth. It examines claims that the rise in inequality in many countries can be attributed to the concurrent rise in trade competition, especially from EMEs like China, spurring trade tensions and protectionist measures. The chapter investigates the conflicting literature showing the aggregate benefits of trade versus the adverse and persistent impact of trade, especially import competition, on specific industries and local communities. It then reviews the evidence for using trade policies and other complementary policies for adjustment and compensation to those groups adversely affected by trade.

Export product quality and inclusivity in developing countries

“…An increasing attention has been being paid to the issue of “inclusive tradeˮ both in the international and domestic arenas (e.g., Bacchetta et al., 2019; Bacchetta et al., 2021; Engel et al., 2021; Garcia‐Algarra et al., 2020; Goff, 2021; In Luke & Macleod, 2019; UNCTAD, 2007; UNESCAP, 2013; WTO, 2016). The question as to what makes trade inclusive has been approached in the literature from various perspectives.…”

“…Investigating the effect of export product quality on inclusivity amounts to examining whether participation in international trade, including from the export side, is inclusive, that is, whether it helps simultaneously improve the real per capita income, reduce income inequality, and reduce poverty. Therefore, the present analysis pertains to the strand of the literature on trade inclusiveness (e.g., Bacchetta et al., 2021; Goff, 2021; Hui, 2019; Kang et al., 2017; UNECLAC, 2014; UNESCAP, 2013; WTO, 2016).…”

“…Investigating the effect of export product quality on inclusivity amounts to examining whether participation in international trade, including from the export side, is inclusive, that is, whether it helps simultaneously improve the real per capita income, reduce income inequality, and reduce poverty. Therefore, the present analysis pertains to the strand of the literature on trade inclusiveness (e.g., Bacchetta et al, 2021;Goff, 2021;Hui, 2019;Kang et al, 2017UNESCAP, 2013UNECLAC, 2014;WTO, 2016). The analysis also speaks to the recent work by Santos-Paulino et al (2019) who have examined the effect of countries' participation in regional trade agreements on what the authors have termed "the development trinity" that encompasses the improvement in economic growth performance, within-country inequality reduction, and fall in poverty rates.…”

“…Bacchetta et al (2021) have provided a literature survey on the relationship between international trade and inclusive growth.…”

Effect of Macroprudential Policies on Sovereign Bond Markets: Evidence from the Asean-4 Countries

“…Since the debt crisis in the euro area in the 2010s, the sovereign risk posed by Treasury bonds have been a crucial target for financial stability regulation. On the other side of the world, the financial markets of the Association of Southeast Asian Nations (ASEAN) are experiencing rapid growth and internationalization, giving rise to increased investor attention and participation from external capital markets (Hofmann, Shim, and Shin 2021;Canuto and Cavallari 2013;Bacchetta et al 2021). Under the heightened uncertainty caused by the coronavirus disease (COVID-19) pandemic, geopolitical conflicts, inflation, and the fear of global economic recession, ASEAN sovereign bonds face potential vulnerability to spillovers from regional and international bond markets (Plummer and Click 2005, Gimet 2011, Banerji et al 2014.…”